BTG Pactual Sells 2 Insurance Stakes to French Insurer
April 22 2016 - 8:40AM
Dow Jones News
SÃ O PAULO—Brazilian investment bank BTG Pactual reached an
agreement to sell its stake in two financial services companies to
French insurer CNP Assurances Group, for a total amount of 700
million reais ($200 million).
BTG, which holds a 51% stake in insurance subsidiaries PAN
Seguros and PAN Corretora, said that the final amount of the
acquisition is "subject to certain adjustments in order to reflect
the companies' performance" until the date of closing plus any
dividends to be distributed to shareholders.
CNP has been operating in Brazil since 2001 through Caixa
Seguradora, a subsidiary owned jointly with state-owned Caixa Econô
mica Federal and CNP Assurances's local distribution partner,
according to the French group's website.
Caixa Seguradora is Brazil's fifth-largest insurance company,
according to its website, and its parent company Caixa Econô mica
is BTG's partner at Banco Pan.
BTG Pactual, once a growing investment bank with global
ambitions, has been selling assets to raise cash after the arrest
of its founder and former CEO André Esteves on Nov. 25 as part of
an investigation into corruption at state-run oil company Petró leo
Brasileiro SA, or Petrobras.
Mr. Esteves, who is no longer involved in the bank's management,
was released from jail in December and is currently under house
arrest. Brazilian prosecutors say Mr. Esteves plotted with a
legislator to bribe a key witness in the investigation and spirit
him out of Brazil. Prosecutors indicted Mr. Esteves in December,
but the Supreme Court hasn't disclosed if the charges have been
accepted because the case is under seal. Through his lawyer, Mr.
Esteves has denied wrongdoing.
Earlier this month, BTG said that an internal investigation
found "no basis to conclude" that allegations of misconduct and
corruption against its former CEO, Mr. Esteves, were "credible,
accurate or supported by reliable evidence."
Mr. Esteves's arrest prompted many clients to pull money from
investment funds managed by the bank, which has been forced to sell
assets and significantly shrink its operations as a consequence.
The value of the bank's traded units has dropped by almost half
since the day before Mr. Esteves's arrest.
Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com
(END) Dow Jones Newswires
April 22, 2016 08:25 ET (12:25 GMT)
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